adminClara Mawere Business Reporter
Small and medium enterprises have been urged to create savings and credit societies where groups of people come together and contribute money for lending to each other, a Government official has said. In a speech read on his behalf by the ministry’s director of resource mobilisation and project development Ms Ethel Hlabangana, at the SMEs Forum and Expo held in the capital last week, Small and Medium Enterprises and Co-operative Development Deputy Minister Noveti Muponora said the initiative had worked well for the SMEs and it has promoted a culture of savings among SMEs.
“The ministry has formalised some internal savings and lending (ISL) schemes into savings and credit co-operatives (Saccos). To date two Saccos have registered with the ministry with one group into garment making and the other in floor polish making,” he said.
He added that his ministry had approached banks to open SME windows to finance the sector as they are currently working with microfinance institutions.
“Government is working with micro- finance institutions which play a pivotal role in supporting micro-enterprises as they have a wider coverage than banks and operate where banks are non-existent,” he said.
He said that sustainability of SMEs depended on their ability to develop market- driven products and market their products locally, regionally and internationally.
“The ministry has been supporting SMEs in growth by means of training and also promoting and facilitating business linkages between small and big businesses,” he said.
The deputy minister said SMEs were facing technological challenges and as a result the quality of products was being compromised.
To address this challenge the Government in partnership with India was providing technological support to improve the value chain of the products.
“The ministry is implementing the Indo-Zim project which facilitates the transfer of technology in the areas of computer aided design, printed circuit board manufacturing and tool and die making,” he said.
Deputy Minister Muponora added that inadequate infrastructure negatively impacted the value chain activities of the SMEs thus the Government was lobbying local authorities for workspace and the strengthening of the public private partnership for the development of the appropriate SMEs infrastructure.
Speaking at the same occasion, the country director of Help from Germany, Mr Christoph Laufens, said he was impressed by the progress made by the entrepreneurs under the project and how they had improved their lives.
“I am very impressed by the progress, the entrepreneurs under this project have made and how they have improved lives and have started successful businesses,” he said.
Help from Germany is an international humanitarian organisation which has been implementing a micro-enterprise development programme in Mabvuku, Tafara and Norton in collaboration with the Ministry of Small and Medium Enterprises and Co-operative Development since 2011.
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